The energy sector has been on the news lately. Our good government, concerned of its citizens, took the matter in their hands and asked the power companies why is their maintenance schedule done all at the same time. Our government, thought that it could be a manner of large companies working together to increase the energy prices.
The companies who got hit by this news has been the power players. And here's why I think there's a potential in this.
We are in an energy crisis. No matter what the government say, we only have enough energy to drive our country. The plants are just enough to sustain our needs. What will happen if calamities arise? We also need more energy to fuel innovation. A lot of our provinces still has no electricity. We still use oil and coal for the majority of our power generation.
Oil and coal will increase in its price as the world already have peaked its oil production. Energy cost will increase further and will be passed unto the consumer. What the government fail to see is not power companies manipulating energy prices. Its just that we now see the effect of a larger scale problem.
The largest power producer in the Philippines is Aboitiz power. They are leading the way in using renewable energy sources. Comparing its share price with other companies in the same industry, you can see that this stock doesn't receive much love. But I think that Aboitiz is doing everything right. And ethically so.
Also, there's been a lot of activity lately with the insiders of the company. A lot of buying from insiders only solidified my theory that Aboitiz will be a big winner in the future.
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